does your credit limit and ultilization help affect your credit score

[NRB525]

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@Jagajaga wrote:

No what happenes if my credit limit is now 50000 and my balance is $500 will my score go up? 

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Your score might go up some, if you keep open balances in the $450 - $500 range and increase credit limits from $5,000 to $50,000.

However.

This hypothetical is too simple. The only realistic way to increase credit limits from $5k to $50k is to incur some significant number of hard pulls, and open new accounts. Those actions will work to bring the score down. The new accounts reporting, either with or in place of the HP impact, will be a drag on scores until they age.

More importantly, at any moment in time, a persons FICO score is set by the structure of the file. The main influence on scores is first payment history, then utilization. A file starting from below 10% utilization on revolving credit, and simply growing credit limits while the utilization stays below 10% won't expect much of an increase in score, since the utilization is already under control.

[SouthJamaica]

It's my understanding that the amount of available credit is a separate factor which does add points to your score.

So that having $25k in available credit with 9% utilization is better than having $5k in available credit with 9% utilization.

[SouthJamaica]

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@Jagajaga wrote:

It remains at 450 or less than 450. 

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That's a different question

If your posted balances total 450, and stay at 450, and your credit limit goes up from 2500 to 25,000, yes that will give your scores a nice bounce upwards.

[NRB525]

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@SouthJamaica wrote:

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@Jagajaga wrote:

It remains at 450 or less than 450. 

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That's a different question

If your posted balances total 450, and stay at 450, and your credit limit goes up from 2500 to 25,000, yes that will give your scores a nice bounce upwards.

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How does one go about moving from $2,500 CL to $25,000 CL? How many points could be expected?

[redbeard]

Very few.

Once optimized, you are optimized.  Yes, you can always optimize a bit more, but you are at the point of splitting hairs in this question.  You might get 2, maybe 5 points, perhaps none.

The odds of a single credit line, being your only credit line, getting a 10 times increase in the credit line are tough to imagine.  Ok, 500 to 5000, maybe, but 2500 to 25000, probably not.  Only way something like this could happen is with a hard pull added to your account or something else signficant happening, such as the account aging to a certain point, in which case, the account age will qualify the increase in score more then the increase in limit.

The other way it could happen is if you have other hi credit line accounts already.  If this is the case, it is unlikely this increase will change your score.

You are asking a question which nobody here can predict reliably and even in the best case, you might get 2-3 points for anyway.

Dan